Bracing for the fallout
Financial support during COVID-19 crisis targets small businesses, vulnerable populations
Pittsburgh philanthropies, government agencies and nonprofits are gearing up to provide financial support to those hardest hit during the economic fallout from the fast-spreading COVID-19 pandemic.
The Pittsburgh Foundation and United Way of Southwestern Pennsylvania are leading an effort to “identify urgent needs” in the community, said John Ellis, spokesperson for the Heinz Endowments, another philanthropy involved in the effort.
As President Donald Trump on Friday declared a national emergency, Mayor Bill Peduto declared a state of emergency for the City of Pittsburgh, and the number of school closures and event cancellations multiplied by the hour, worry deepened about how individuals and families will cope with lost wages and how businesses will survive dramatic declines in revenues.
The foundations and United Way “are trying to get a clearer understanding of what’s happening in the community at the moment and what possibly we need to be prepared for … in the context of COVID-19 and the economic downturn,” Mr. Ellis said.
The United Way said it expects the greatest need to be among people who can’t afford to stock up in advance on food and supplies, senior citizens who rely on meals from community centers or Meals on Wheels programs, and children who receive their primary meals at schools or after-school programs.
Others at risk are the homeless, especially if shelters become contaminated, and struggling families and individuals who face lost wages as businesses close or scale back.
“Impacts are likely to be greatest for lower-income workers in industries such as food service, hospitality and retail,” United Way said in a statement.
The charity also said it expects more behavioral and mental health crises “due to heightened anxiety” about the novel coronavirus and its impact.
United Way’s PA 2-1-1 Southwest helpline is handling requests
for food, health care, utility and rent assistance, and other emergency issues.
The nonprofit Hebrew Free Loan Association is providing interest-free loans of up to $5,000 for individuals impacted by the coronavirus crisis.
The bridge loan program was announced Thursday, and by Friday morning, the association had received eight applications — mostly small-business owners, said Aviva Lubowsky, director of marketing for the HFLA.
Shelley Daniels, president of the association, said the program was approved “as we brace for an unprecedented public health emergency.”
“Many of us do not know what to expect exactly, but we know there will be a financial fallout,” Ms. Daniels said.
Applications for the loans can be made online at www.hflapgh.org/coronavirusloan
Applicants must live in one of Allegheny, Armstrong, Beaver, Butler, Washington or Westmoreland counties and have a household income no greater than $115,000.
If approved, funds could be available in two to three weeks.
Robert Sayre, who owns Mesa, a restaurant located in Oakland’s Schenley Plaza, said he and his wife have talked about applying for the HFLA funds.
With its location in the heart of the city’s university hub, Mesa expects a significant drop in sales as colleges transition to remote classes and workers telecommute.
His wife, Jessica Strong, is a co-founder of Flexable, which provides on-site childcare services for people attending events.
While Flexable faces lost revenues from the proliferation of event cancellations, Mr. Sayre said his wife’s company could make up some of that business in the next few weeks by supplying services at workplaces where employees are scrambling for child care during school closures.
Open since 2017, Mesa is accustomed to a typical 50% drop in business during the University of Pittsburgh’s spring break.
The decline was bigger this week during Pitt’s spring break as people began working from home and events were canceled, Mr. Sayre said.
Instead of adding another employee as he typically does for a peak late spring, Mr. Sayre will continue to operate with its winter staff level of seven employees, mostly part-timers.
He’s hoping that Mesa, with a menu of New Mexican dishes, will attract customers because it offers takeout and doesn’t have seating.
“You don’t have to come into the building and interact,” Mr. Sayre said. “You can just come to the window and pick up the food without touching anyone. Right now, that may be something that doesn’t scare too many people away.”
Mesa is also signing on with food delivery apps for the first time because “we anticipate the slowdown and an increase in people staying in their homes and wanting to get food delivered,” he said.
The U.S. Small Business Administration is working with states to provide what it’s calling “coronavirus disaster relief lending” that will include low-interest loans of up to $2 million to small firms and nonprofits.
Kelly Hunt, director of the SBA’s Pittsburgh district office, said the agency is working with the state’s Department of Community and Economic Development to collect information from small businesses that have been negatively impacted by the virus.
Once that data is assembled, Gov. Tom Wolf’s office will formally apply to the SBA for Pennsylvania to be declared as an area in need and the SBA can make the funds available to applicants, Ms. Hunt said.
The city’s Urban Redevelopment Authority said it will work with its current borrowers who have trouble making payments on their URA loans.